PREMIA SOLUTIONS WARRANTY LIMITED

Executive Summary

PREMIA SOLUTIONS WARRANTY LIMITED has shown significant financial recovery in late 2023, moving from negative equity and liquidity distress to profitability and positive net assets. However, the company ceased trading in early 2024, with accounts prepared on a break-up basis, indicating ongoing uncertainty about its future viability. Immediate strategic decisions and improved financial management are critical to stabilizing or restructuring the business.

PREMIA SOLUTIONS WARRANTY LIMITED - Analysis Report

Company Number: 13123733

Analysis Date: 2025-07-20 12:05 UTC

Financial Health Assessment for PREMIA SOLUTIONS WARRANTY LIMITED

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1. Financial Health Score: C

Explanation:
The company shows signs of recovery after a period of financial distress but remains in a fragile state. While recent results indicate a return to profitability and improved net current assets, the overall financial foundation is still relatively weak, reflecting a cautious outlook.

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2. Key Vital Signs

Metric	Latest (2023-12-31)	Previous (2023-03-31)	Interpretation
Current Assets	£133,647	£67,522	Increased significantly, indicating improved liquidity and asset base.
Cash at Bank	£7,641	£10,328	Slight decrease in cash reserves suggests cash burn or use of cash for operations/investment.
Debtors	£126,006	£57,194	Debtors more than doubled, potentially increasing risk of bad debts or indicating growth.
Current Liabilities	£109,126	£156,767	Reduced liabilities improve short-term solvency and reduce immediate pressure.
Net Current Assets	£24,521	-£89,245	Turned positive after being deeply negative, signaling improved working capital health.
Shareholders’ Funds	£24,521	-£89,345	From negative equity to positive, showing restored net asset value and reduced accumulated loss.
Profit for the Period	£113,766	(Loss previously)	Strong turnaround to profitability in the latest period.
Going Concern Status	Not going concern	N/A	Company ceased trading early 2024; accounts prepared on break-up basis, indicating distress.
Employee Numbers	17 (average)	10 (previous)	Increased staffing before cessation, possibly indicating growth before trading stopped.

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3. Diagnosis: What the Financial Data Reveals

The company has experienced a turbulent financial journey. In the year ending March 2023, it faced significant distress with negative net current assets and shareholders' funds, indicating a liquidity crunch and solvency issues — akin to a patient in critical condition. The net current liabilities of £156,767 and negative equity of £89,345 were clear symptoms of financial strain.

However, the latest nine months to December 2023 show a remarkable recovery: net current assets improved to £24,521, and shareholders' funds turned positive with a profit of £113,766. This suggests the business managed to stabilize its finances, improve asset management, and reduce liabilities, reflecting “healthy cash flow” and a more balanced financial structure.

Nonetheless, the company ceased trading early in 2024, and the accounts are prepared on a non-going concern basis (break-up basis). This is a critical symptom indicating that despite recent improvements, the company’s operational viability is uncertain, and it faces challenges in sustaining business activities without a strategic turnaround or restructuring.

The post-balance sheet event transferring employees to another group company suggests a business model or group restructuring, which may relieve the company of operational burdens but leaves its standalone future unclear.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Strategic Review & Future Planning: Immediate focus should be on clarifying the company’s future—whether to restructure, merge, or wind down. This is essential given the non-going concern status.
• Strengthen Cash Reserves: Improve liquidity through better cash management or capital injection to avoid cash flow “heart attacks.”
• Debtor Management: Tighten credit control to reduce exposure from increased debtors, ensuring timely collections to maintain cash flow.
• Cost Control & Operational Efficiency: Review cost structures and reduce overheads to ensure operations can be profitable if restarted.
• Stakeholder Communication: Maintain transparent communication with creditors, shareholders, and employees to rebuild confidence.
• Explore Group Support: Leverage the ultimate parent company and group relationships for financial or operational support.
• Monitor Legal & Compliance Risks: Ensure all filings and statutory obligations remain current to avoid penalties and further distress signals.

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Medical Analogy Summary

The company has been through a severe bout of financial illness, showing symptoms of distress such as negative equity and liquidity shortfalls. Recent financials indicate a recovery phase with healthier working capital and profitability. However, the cessation of trading and non-going concern status suggest the patient remains in a delicate condition, requiring careful treatment and a clear plan for rehabilitation or orderly closure.

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